Petro Carbon and Chemicals Limited IPO is set to open for subscription on June 25th. This book-built issue aims to raise Rs 113.16 crore for the company. Before subscribing to the Petro Carbon and Chemicals Limited IPO please analyse about it.
Petro Carbon and Chemicals Ltd (PCCL), a division of the ATHA Group, specializes in producing and distributing Calcined Petroleum Coke (CPC) using a business-to-business (B2B) approach. Its primary clientele includes the aluminium, graphite, titanium dioxide, metallurgical, chemical, and steel industries.
PCCL operates on a business-to-business (B2B) model, supplying Calcined Petroleum Coke (CPC) to aluminium manufacturers, producers of graphite electrodes, titanium dioxide, and metallurgical industries. In recognition of its excellence, PCCL was honored with the Nalco Vikas Utkarsh Award in 2018 as the top supplier.
PCCL’s plant, established in 1975 and modernized by the group in 2008, has demonstrated significant performance enhancements over the past five years. This improvement is attributed to vertical integration, technological innovation, diversification, and strategic partnerships.
Risks of bringing an Petro Carbon and Chemicals IPO
Risks for Petro Carbon and Chemicals Ltd include substantial reliance on CPC sales to the aluminium, steel, and associated industries, vulnerabilities in its supply chain, operational hurdles, and the potential for disruptions that could impact both financial stability and reputation.
Petro Carbon and Chemicals Limited’s IPO is set to open for subscription on June 25th. This book-built issue aims to raise Rs 113.16 crore for the company. Here are key points to consider before subscribing to the Petro Carbon and Chemicals Limited IPO.
Petro Carbon and Chemicals Ltd (PCCL) specializes in manufacturing Calcined Petroleum Coke (CPC) for the steel and aluminum industries. Their revenue mainly comes from sales to aluminum smelters, graphite electrode producers, and titanium dioxide manufacturers. Industry downturns or customer issues can threaten financial stability. The procurement of raw petroleum coke is crucial, with rising costs and reliance on short-term contracts posing supply risks. Operational disruptions, such as equipment breakdowns or raw material shortages, can impact production, business reputation, and financial stability. Maintaining high-quality standards is essential to retain customers and avoid liabilities.
Petro Carbon and Chemicals GMP
Market analysts report that the Grey Market Premium (GMP) for Petro Carbon and Chemicals SME IPO is Rs 105 in the unlisted market.
Financial Performance
Petro Carbons and Chemicals Limited experienced a significant 84.92% growth in revenue and a 17.8% increase in profit after tax (PAT) from the financial year ending March 31, 2022, to March 31, 2023. As of December 31, 2023, the company reported revenue of Rs 447.11 crore and a profit after tax of Rs 70.31 crore for that period.